Adani Power of India has said it will suspend electricity supply to Bangladesh if the government does not resolve its payment issues by November 7, according to a Times of India report
Following a reduction in power supply due to outstanding dues, Adani Power has set the deadline for the Bangladesh government to clarify the situation regarding the dues, which total nearly $850 million.
Earlier, Adani Power had set an October 31 deadline for the Bangladesh Power Development Board (BPDB) to settle the outstanding amount and provide a letter of credit (LC) of $170 million to ensure secure payment.
Although the BPDB attempted to issue an LC for the overdue amount through Krishi Bank, the effort did not align with the terms of the power purchase agreement, as reported by a TOI source. A shortage of dollars was mentioned as one of the reasons.
Adani Power Jharkhand reduced its supply from October 31, worsening the existing power shortages in Bangladesh.
As per the latest update on the Power Grid Bangladesh (PGB) website, on November 1, Adani’s plant in Godda (Jharkhand) supplied 724 megawatts against an installed capacity of 1,496 MW.
Adani Power Jharkhand is the largest supplier of electricity, followed by the Payra (1,244 MW), Rampal (1,234 MW), and SS Power I (1,224 MW) plants.
Adani has not publicly commented on the situation, but senior executives have expressed hope for a resolution, according to the report.
The decision to snap supply will also impact the Godda plant’s viability as Bangladesh is the sole power purchaser and Adani Power Jharkhand has had to leave one of the two 800 MW units idle.
Preferring anonymity, a top official of BPDB told UNB that Adani Power requested Bangladesh to pay dues through a letter few days back.
The Indian Ministry of External Affairs, however, said the government of India has no role in this contract.
“This issue is between two parties. There is a contractual obligation between them: one is a private organization and the other is the government of Bangladesh. The government of India has no role in this contract,” MEA Spokesperson Randhir Jaiswal told reporters while responding to a question during a weekly briefing on Saturday.
The spokesperson said he does not have any further information to share with at this moment.
